GEICO Hit with Class Action for Allegedly Issuing Late Final Payments to Terminated Employees

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GEICO faces a proposed class action wherein a former employee claims the insurer, by company policy, unlawfully fails to pay involuntarily terminated workers all wages due on their last day of work.

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The seven-page lawsuit alleges GEICO’s purportedly untimely payments violate the Massachusetts Wage Act, which requires the insurance company to issue to involuntarily terminated employees their wages in full—including compensation for every hour worked as of their final day and all accrued but unused paid time off—on the date of termination.

The plaintiff, who worked in a Massachusetts office as a staff counsel attorney, says that her supervisor—co-defendant Patrice L. Simonelli—informed her in March 2023 that GEICO had terminated her employment, effective immediately. However, rather than issue the plaintiff’s wages in full on her final day, as required by state law, GEICO did not pay the woman’s final paycheck until nine days later, the suit contends.

According to the case, a benefits checklist given to the plaintiff makes clear that it is GEICO’s policy to issue final payments to terminated workers “on the next scheduled payday” following their last day of work “except as required by law.”

Despite the document’s “disclaimer” that certain laws may require a “more timely payment” than the plaintiff’s next payday, GEICO nevertheless breached Massachusetts law by failing to issue the woman her final paycheck on the day of her termination, the complaint claims.

The lawsuit looks to represent anyone who, at any time within the past three years, was terminated from their employment with GEICO in Massachusetts, whether at a GEICO office or at their respective homes in Massachusetts.

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